I. Recent Updates:
1. THE COMMISSIONER OF INCOME TAX Vs. M/S BABA DEEP SINGH EDUCATIONAL SOCIETY, INCOME-TAX APPEAL NO. 881 OF 2010, DATE OF DECISION: 13.10.2011, HIGH COURT OF PUNJAB AND HARYANA
The jurisdiction of the Commissioner at the stage of processing application under Section 12AA of the Act is limited regarding whether the activities are genuine and in consonance with the objects of the trust or institution and where education is being imparted as per the rules and the factum of the establishment and running of schools is not disputed the same was a genuine activity and the enquiry regarding genuineness of the activities cannot be stretched beyond this.
That the respondent-society which was admittedly running a Polytechnic College and the activities were interwoven for furthering the projects and activities pertaining to education, the Tribunal rightly directed that registration should be granted to the respondent-society with the rider that the same could always be cancelled if it came to the notice of the CIT that the society was not carrying on the activities as per its objects. The Commissioner while processing the application under Section 12AA of the Act was not to act as an Assessing Authority.
(Please click here for judgment)
2. COMMISSIONER OF INCOME TAX Vs. M/S STATE URBAN DEVELOPMENT SOCIETY, DATE OF DECISION: 19.10.2011, ITA NO. 210 OF 2011, HIGH COURT OF PUNJAB AND HARYANA
Learned counsel for the appellant vehemently argued that the Society itself has reflected the grants received from Central and State Governments as income. Therefore, it is not open to the assessee to take a stand that such grants are not the income. The said aspect has been considered by the Tribunal, wherein, it has been held that reflection in the profit and loss account towards the income is not determinative. The entries in the books of account do not decide the nature of receipts. Since, the grants have been received by the assessee for disbursement and keeping in view the fact that the same cannot be utilized for any other purpose such as distribution for the poverty in furtherance to the object of the Schemes, it cannot be treated as income of the assessee. As per the finding of fact recorded by the Tribunal, no substantial question of law arises in the present petition.
(Please click here for judgment)
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